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| PCCW Confirms Acquisition Talks |
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Hong Kong telephone operator PCCW confirmed Wednesday night in an announcement that The announcement came amid reports that an Australian bank-led consortium could offer some 40 billion Hong Kong dollars (US$5.1 billion) for the assets of PCCW, which is controlled by Richard Li, son of PCCW received "a non binding expression of interest" from Macquarie Bank Ltd. on June 16 and TPG Newbridge expressed its interest on June 20, according to the company's announcement. "Both expressions of interest are indicative and preliminary in nature and the form which any possible transaction might take, and the means and structure by which it might be implemented, remain to be discussed and determined," said the announcement. PCCW, however, said in the announcement that reports appearing in "The reports of estimated consideration of HK$40 billion and HK$50 billion (US$5.14 billion and 6.43 billion) which appeared in the PCCW said it would continue discussions with potential acquirers "in the best interests of the company and its shareholders." "It is not appropriate at this time to disclose the proposed consideration in the absence of the detailed terms of any transaction, which have yet to be formulated," the announcement said. However, PCCW said the company would need to obtain the consent of China Network Communications Group Corporation, which holds 20 percent of PCCW's shares, if the company were to seek to dispose of more than 10 percent of the voting interest of the company and its subsidiaries. At the request of the company, trading in the shares of PCCW on the Stock Exchange was suspended with effect from 9: Analysts said the possible transactions between PCCW and acquirers could face potential objections on security and nationalist grounds from State-owned China Network Communications Group bought 20 percent of PCCW last year for one billion dollars in a deal intended to lead to a series of cooperative ventures and in part just such a pre-emptive strategic tie-up. China Netcom said in a statement late Tuesday that it did not want to see any changes at PCCW and would look closely at any proposed acquisition of PCCW's assets "to assure shareholder rights are well protected." "We do not want to see any changes in PCCW, which is owned and managed by (Xinhua News Agency June 22, 2006)
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